For dropshipping businesses that source and manufacture products from China, understanding the impact of the Lunar New Year (CNY) is crucial. Many dropshipping sellers have experienced challenges related to product shortages, shipping delays, and customer complaints during this period.
What is Chinese New Year?
Chinese New Year, also known as Lunar New Year or the Spring Festival, takes place from February 10th to February 17th, 2024. However, preparations for the holiday typically begin three weeks before the actual celebrations, with activities lasting until the Lantern Festival on February 24th.
For international e-commerce business owners, now is the time to take notice of this holiday and find out about the major timelines of CNY 2024.
What Are the Timelines for CNY 2024?
Here are the general key dates to keep in mind:
- Early to mid-January: Production and businesses start slowing down, and some factories may close early.
- End of January: Manufacturers begin to stop production.
- Early February: Most employees start leaving for the holidays, and logistics begin to shut down.
- February 9: Chinese New Year’s Eve, almost all employees stop working.
- February 10: Chinese New Year.
- Mid-February: Employees start returning to work, and logistics gradually resume.
- February 24: The Lantern Festival.
- End of February: Most manufacturers resume production.
- Early March: Almost all operations return to normal.
How Does It Affect My eCommerce Business?
- Delays in Production:
During the Chinese New Year holiday, all factories will be closed, and employees will go home for about two weeks or more.
Some factories may close earlier than usual, causing production slowdowns from the beginning of January.
Expect manufacturing delays for your orders during this time.
2. Out of Stock:
Many factories clear their inventory near the end of the year and start preparing for new stock after the holiday.
If you plan to ship out products during this time, there’s a chance that suppliers will be out of stock.
You may need to wait at least two weeks or longer for your Chinese supplier to start preparing your stock after they return to work.
3. Slow Supply Recovery After The Holidays:
After the Spring Festival, most employees will return to work, and manufacturers will gradually resume production.
However, there may still be labor shortages for a short period.
Some employees may leave for new jobs, and manufacturers will need to hire new employees.
There will be a large number of orders accumulated during the shutdown period, potentially causing overall delivery time delays.
4. Delays in Shipment:
Most shipping companies will limit operations as Chinese New Year approaches and stop picking up packages, shipping, and delivering a few days before the Spring Festival.
Shipping companies won’t resume operations until after the holidays, with only a few continuing to work during the holidays.
Shipping and delivery times may be affected, and shipping costs can rise at the end of the year.
How to Get Ahead of Potential Delays:
- Increase Inventory in Advance:
- Stock up on holiday inventory beforehand to avoid running out or facing delays.
- For those planning to sell customized or seasonal goods, preparation is especially necessary to ensure timely arrivals.
- Take Advantage of HyperSKU’s Multiple Warehouses:
- Purchase enough stock and store it at HyperSKU’s China warehouse in multiple locations.
- This approach helps avoid stockouts, and warehouse staff can process and ship orders immediately when customers place them.
- Keep in Touch with Your Supplier and Shipping Company:
- Maintain close contact with your supplier and shipping company to stay informed about closures and disruptions.
- Keep track of important information, such as when your supplier’s factory will close or if any fast shipping channels become unavailable.
- Find a Trustworthy Fulfillment Service Provider – HyperSKU:
- HyperSKU offers experienced and trustworthy fulfillment services, including sourcing, order fulfillment, product customization, and inventory stocking to shipping.
- With over seven warehouses, HyperSKU helps ease the stress of potential shutdowns during the Chinese New Year. A dedicated team of up to three agents, including support, sales, and an account manager, ensures personalized service.
- HyperSKU can provide professional advice and service to navigate challenges during this time, negotiating the best prices with Chinese factories clearing their stock at the end of the year.
Stay tuned for HyperSKU’s holiday arrangements for the New Year!
Top 5 eCommerce Trends Reshaping Your Marketing in 2024
1.Exploring the Potential of TikTok Shop in 2024
The introduction of TikTok Shop in 2023 marked a significant shift in how Gen Z consumers explore products. While still in its early stages, this new commerce engine shows promise. Reports from Modern Retail highlight initial success stories, such as BK Beauty witnessing a 10% to 20% boost in net new sales on TikTok Shop. Similarly, a New York-based food client of Digishopgirl Media experienced a gradual increase of up to 15% in sales over six months of Shop testing.
From a business perspective, Patrick Wind, the Managing Director of AdsAccelerator, shared notable advantages of TikTok over Meta, emphasizing its user-friendly approach for advertisers and high-level customer support.
According to Brett Bernstein, CEO at Gatsby, integrating TikTok Shop as a sales channel is a strategic move for 2024, especially for products tailored to this audience. For Shopify users, expanding into sales channels like TikTok, Instagram, and the Shop App is recommended, simplifying the process of discovering and converting new customers.
2. Sustainability Beyond: The Rise of Reusable Packaging
McKinsey forecasts sustainable and reusable packaging as a dominant trend throughout 2024, despite inflationary challenges. Growing consumer demand for eco-friendly packaging prompts an anticipated surge in brands exploring sustainable options. This shift not only reduces environmental impact but also fosters a stronger connection with conscious consumers.
An exemplar in this movement is Boox, committed to revolutionizing shipping by offering circular and reusable packaging, striving to eliminate single-use packaging from the direct-to-consumer (DTC) landscape.
Brands aspiring to introduce reusable options should strategically market them to motivate customers and evoke positive sentiments. Integration into loyalty program rewards structures, for instance, not only raises awareness but also incentivizes customer participation.
3. Cross-Sell Dominance: Beyond Repeat Purchases
Retention evolves beyond repeat buys to product expansion. Encouraging customers to explore more categories enhances loyalty. Brands using Yotpo prioritize product adoption, with data revealing an average of 2.4 products per customer. In 2024, expanding this number becomes a cornerstone of retention strategies.
4. AI’s Ascendancy: More Than Meets the Eye
While AI in e-commerce has gained traction, its true potential is yet to be fully realized. Predictions indicate a $16.8 billion market by 2030, with a projected CAGR of 15.7% over the next eight years. Forrester predicts a pivotal shift in the agency landscape, with AI playing a permanent role in 2024.
Meta’s AI Sandbox, IBM’s AI tools, and Yotpo’s Tailor AI exemplify this trend. Meta’s creative optimization via AI resulted in a reported 17% improvement in cost-per-action and a 32% improvement in overall ad spend. IBM’s AI empowers brands to track and evolve messaging based on customer response.
These AI insights serve as valuable tools for human-made decisions, with experts like Stokes emphasizing AI as a personal assistant, automating tasks but requiring human input for quality, depth, and detail.
5. Authenticity vs. Social Scams: Building Trust
Despite the surge in social commerce spending, trust concerns loom large. A Retail Dive report reveals that while 60% of US shoppers are willing to spend on social media, 53% find it challenging to trust products sold through these channels.
This skepticism extends across generations, with 52% of Gen Z and Millennials sharing similar apprehensions. Worries about scams, reluctance to share checkout information, and concerns about counterfeit or low-quality products prevail. As spending on social platforms rises, so does the influx of inexpensive, niche-targeted products.
To combat this, brands investing in social commerce in 2024 prioritize conveying trust and quality. Authenticity and real customer reviews emerge as crucial tools to establish trust, integrating user-generated content (UGC) and testimonials more deeply into social platforms.
As we step into 2024, the eCommerce landscape is poised for innovation and transformation.
Our commitment to keeping you informed remains unwavering. Stay tuned for more insightful trends and expert strategies that will empower DTC brands to not only navigate but thrive in the ever-evolving eCommerce ecosystem. Your success is our priority, and we’re excited to embark on this journey together in 2024 and beyond. Watch this space for more eCommerce trends and insights tailored to elevate your business to new heights.